Is SEBI ignorant about cases of insider trading?
A reply to an application filed under the Right to Information (RTI) Act had revealed that the Securities Exchange Board of India (SEBI) does not have information relating to its market surveillance system.
The application was filed on the behalf of Moneylife seeking information on SEBI’s surveillance statistics. The applicant wanted to know as to how many suspicious cases were detected by its Integrated Market Surveillance System (IMSS) and Data Warehousing Business Intelligence System (DWBIS). SEBI had spent an amount of Rs. 50 crore on installations of its ultra sophisticated surveillance systems and DWBIS. While routing these systems, SEBI had claimed that these system are based on the latest technology of computation and data analysis. It was also claimed that these will assist in cracking insider trading, using host pattern recognition algorithms.
Activists have questioned that even after spending Rs. 50 crore of taxpayers’ money on capital expenditure of IMSS and DWBIS, how can the SEBI be ignorant about the cases triggered by the systems.